1-800-FLOWERS.COM, Inc. Reports Fiscal 2026 Second Quarter Results

JERICHO, N.Y.--( BUSINESS WIRE)--1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of thoughtful expressions designed to help inspire customers to give more, connect more, and build more and better relationships, today reported results for its Fiscal 2026 second quarter ended December 28, 2025.

“Our teams remained focused on executing against our key strategic priorities throughout the holiday period, which continues to reflect the early stages of our broader transformation,” said Adolfo Villagomez, Chief Executive Officer. “While the topline impact of our initiatives will take time as we address structural challenges within the business, we made solid progress in the second quarter on our cost-optimization and organizational-streamlining efforts, including meaningful steps toward transforming our structure into a more functional and efficient organization. These actions are strengthening our operating foundation and better positioning the Company to achieve sustainable, profitable growth. I am proud of how our teams supported our customers and advanced the operational improvements and strategic priorities that are essential to our long-term success.”

Fiscal 2026 Second Quarter Performance

(1) Refer to “Definitions of Non-GAAP Financial Measures” and the tables attached at the end of this press release for reconciliation of non-GAAP results to applicable GAAP results.

Segment Results

The Company provides Fiscal 2026 second quarter selected financial results for its Gourmet Foods & Gift Baskets, Consumer Floral & Gifts, and BloomNet® segments in the tables attached to this release and as follows:

Fiscal Year 2026 Outlook

The Company views Fiscal Year 2026 as a pivotal period of foundation setting. By transforming 1-800-Flowers.com, Inc. into a customer-centric, data-driven organization with clear objectives and ROI-focused decision making, the Company aims to position itself to fuel future growth.

For the second half of Fiscal Year 2026, the Company expects revenue to decline in the low double-digit range, reflecting a continued focus on improving marketing contribution margin, the impact of changes to search engine results page, including increased paid placements and AI-driven content, which negatively impacted organic visibility and direct traffic, and tougher comparisons following higher levels of less efficient marketing spend in the prior year.

For the second half of Fiscal Year 2026, the Company expects Adjusted EBITDA 1 to decline slightly compared to the prior year. On a normalized basis for the second half of Fiscal Year 2026, Adjusted EBITDA 1 is expected to increase slightly year over year, which excludes approximately $12 million of anticipated incentive compensation and consultant costs incurred in the period. Ongoing cost-optimization initiatives and organizational-streamlining efforts are expected to help offset topline pressure.

The Company’s strategic priorities are focused on positioning the organization for long-term growth. These priorities include:

With a renewed commitment to agility and customer-centricity, the Company believes these foundational steps will set the stage for sustainable revenue and profit growth in the years to come.

Conference Call

The Company will conduct a conference call to discuss its financial results today, January 29, 2026, at 8:00 a.m. (ET). The conference call will be webcast from the Investors section of the Company’s website at www.1800flowersinc.com. A recording of the call will be posted on the Investors section of the Company’s website within two hours of the call’s completion.

Definitions of non-GAAP Financial Measures:

We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. Non-GAAP financial measures referred to in this document are either labeled as “non-GAAP,” “adjusted” or designated as such with a “1”. See below for definitions and the reasons why we use these non-GAAP financial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures. Reconciliations for forward-looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, tax items, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures.

EBITDA and Adjusted EBITDA:

We define EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Deferred Compensation Plan (“NQDC”) investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and Adjusted EBITDA were calculated for each period presented. The Company presents EBITDA and Adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and Adjusted EBITDA as factors to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company's credit agreement uses EBITDA and Adjusted EBITDA-related items to determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of the limitations are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance.

Segment Contribution Margin and Adjusted Segment Contribution Margin:

We define Segment Contribution Margin as earnings before interest, taxes, depreciation, and amortization, before the allocation of corporate overhead expenses. Adjusted Segment Contribution Margin is defined as Segment Contribution Margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how Segment Contribution Margin and Adjusted Segment Contribution Margin were calculated for each period presented. When viewed together with our GAAP results, we believe Segment Contribution Margin and Adjusted Segment Contribution Margin provide management and users of the financial statements meaningful information about the performance of our business segments. Segment Contribution Margin and Adjusted Segment Contribution Margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of Segment Contribution Margin and Adjusted Segment Contribution Margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for this limitation when using these measures by looking at other GAAP measures, such as Operating Income and Net Income.

Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share:

We define Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share as Net Income (Loss) and Net Income (Loss) Per Common Share adjusted for certain items affecting period-to-period comparability. See Selected Financial Information below for details on how Adjusted Net Income (Loss) Per Common Share and Adjusted or Comparable Net Income (Loss) Per Common Share were calculated for each period presented. We believe that Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP Net Income (Loss) and Net Income (Loss) Per Common Share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies.

Free Cash Flow:

We define Free Cash Flow as net cash provided by (used in) operating activities less capital expenditures. The Company considers Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet, and repurchase stock or retire debt. Free Cash Flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since Free Cash Flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A limitation of the utility of Free Cash Flow as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period.

About 1-800-FLOWERS.COM, Inc.

1-800-FLOWERS.COM, Inc. is a leading provider of thoughtful expressions designed to help inspire customers to share more, connect more, and build more and better relationships. The Company’s e-commerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Card Isle®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Simply Chocolate® and Scharffen Berger®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; and DesignPac®, a manufacturer of gift baskets and towers. 1-800-FLOWERS.COM, Inc. was recognized among America’s Most Trustworthy Companies by Newsweek for 2024. 1-800-FLOWERS.COM, Inc. was also recognized as one of America’s Most Admired Workplaces for 2025 by Newsweek and was named to the Fortune 1000 list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com.

FLWS-COMP

FLWS-FN

Special Note Regarding Forward Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or forecasts concerning future events; they do not relate strictly to historical or current facts. Such statements can generally be identified by words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “foresee,” “forecast,” “likely,” “should,” “will,” “target,” or similar words or phrases. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements relating to future actions; the Company’s ability to leverage its operating platform and reduce its operating expense ratio; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its strategic priorities; its ability to cost effectively acquire and retain customers and drive purchase frequency; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more efficient marketing programs; and general consumer sentiment and industry and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. The Company cannot guarantee that any forward-looking statement will be realized. Achievement of future results is subject to risk, uncertainties and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, refer to the Company’s SEC filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.

1-800-FLOWERS.COM, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

December 28, 2025

June 29, 2025

(unaudited)

Assets

Current assets:

Cash and cash equivalents

193,337

46,502

Trade receivables, net

55,666

21,693

Inventories

148,884

177,127

Prepaid and other

19,393

37,405

Total current assets

417,280

282,727

Property, plant and equipment, net

204,623

215,596

Operating lease right-of-use assets

100,477

107,476

Goodwill

37,625

Trademarks with indefinite lives

86,673

Other intangibles, net

1,875

2,691

Other assets

44,507

39,829

Total assets

893,060

772,617

Liabilities and Stockholder’s Equity

Current liabilities:

Accounts payable

123,149

74,581

Accrued expenses

168,901

109,887

Current maturities of long-term debt

24,000

21,000

Current portion of long-term operating lease liabilities

16,711

15,918

Total current liabilities

332,761

221,386

Long term debt, net

123,470

134,764

Long-term operating lease liabilities

93,552

99,644

Deferred tax liabilities, net

6,776

6,679

Other liabilities

46,800

41,862

Total liabilities

603,359

504,335

Total stockholders’ equity

289,701

268,282

Total liabilities and stockholders’ equity

893,060

772,617

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statements of Operations

(in thousands, except for per share data)

(unaudited)

Three Months Ended

Six Months Ended

December 28, 2025

December 29, 2024

December 28, 2025

December 29, 2024

Net revenues:

E-Commerce

595,666

677,326

764,680

870,500

Other

106,513

98,166

152,699

147,082

Total net revenues

702,179

775,492

917,379

1,017,582

Cost of revenues

406,713

439,899

545,151

589,670

Gross profit

295,466

335,593

372,228

427,912

Operating expenses:

Marketing and sales

156,068

187,003

225,173

269,100

Technology and development

14,438

15,973

28,588

31,612

General and administrative

37,066

27,410

68,184

55,936

Depreciation and amortization

13,569

14,130

26,471

27,168

Total operating expenses

221,141

244,516

348,416

383,816

Operating income

74,325

91,077

23,812

44,096

Interest income

(122

)

(484

)

(433

)

(1,144

)

Interest expense

6,208

4,880

10,829

8,900

Other income, net

(1,871

)

(1,164

)

(4,218

)

(2,931

)

Income before income taxes

70,110

87,845

17,634

39,271

Income tax (benefit) expense

(443

)

23,497

9,113

Net income

70,553

64,348

17,596

30,158

Basic net income per common share

1.11

1.01

0.28

0.47

Diluted net income per common share

1.10

1.00

0.28

0.47

Weighted average shares used in the calculation of net income per common share

Basic

63,816

63,836

63,723

64,017

Diluted

63,965

64,306

63,913

64,501

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statement of Cash Flows

(in thousands)

(unaudited)

Six Months Ended

December 28, 2025

December 29, 2024

Operating Activities:

Net income

17,596

30,158

Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:

Depreciation and amortization

26,471

27,168

Amortization of deferred financing costs

706

361

Deferred income taxes

421

(1,496

)

Bad debt expense

131

Stock-based compensation

4,607

6,108

Other non-cash items

(392

)

(412

)

Changes in operating items, net of acquisitions:

Trade receivables

(30,380

)

(43,400

)

Inventories

28,243

20,446

Prepaid and other

18,013

5,850

Accounts payable and accrued expenses

103,602

104,671

Other assets and liabilities

1,960

1,722

Net cash provided by operating activities

170,909

151,307

Investing activities:

Acquisitions, net of cash acquired

—

(3,000

)

Capital expenditures

(14,290

)

(23,023

)

Net cash used in investing activities

(14,290

)

(26,023

)

Financing activities:

Acquisition of treasury stock

(784

)

(7,683

)

Proceeds from exercise of employee stock options

—

182

Proceeds from bank borrowings

175,000

110,000

Repayment of bank borrowings

(184,000

)

(140,000

)

Net cash used in financing activities

(9,784

)

(37,501

)

Net change in cash and cash equivalents

146,835

87,783

Cash and cash equivalents:

Beginning of period

46,502

159,437

End of period

193,337

247,220

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information - Category Information

(dollars in thousands)

(unaudited)

Three Months Ended

December 28, 2025

Restructuring cost/Severance

As adjusted (non-GAAP) December 28, 2025

December 29, 2024

System Implementation Costs

As adjusted (non-GAAP) December 29, 2024

% Change

Net revenues:

Consumer Floral & Gifts

181,245

—

181,245

234,349

—

234,349

(22.7

BloomNet

22,124

—

22,124

22,837

—

22,837

(3.1

Gourmet Foods & Gift Baskets

498,989

—

498,989

518,454

—

518,454

(3.8

Corporate

—

113

—

113

(21.2

Intercompany eliminations

(268

)

—

(268

)

(261

)

—

(261

)

(2.7

Total net revenues

702,179

—

702,179

775,492

—

775,492

(9.5

Gross Profit:

Consumer Floral & Gifts

72,757

—

72,757

98,288

—

98,288

(26.0

40.1

41.9

BloomNet

11,267

—

11,267

11,624

—

11,624

(3.1

50.9

Gourmet Foods & Gift Baskets

211,254

—

211,254

225,390

1,992

227,382

(7.1

42.3

43.5

43.9

Corporate

188

—

188

291

—

291

(35.4

211.2

257.5

Total gross profit

295,466

—

295,466

335,593

1,992

337,585

(12.5

42.1

43.3

43.5

EBITDA (non-GAAP)

Segment Contribution Margin (non-GAAP) (a)

Consumer Floral & Gifts

15,536

1,108

16,644

21,587

—

21,587

(22.9

BloomNet

6,160

248

6,408

7,460

—

7,460

(14.1

Gourmet Foods & Gift Baskets

103,471

1,813

105,284

107,277

4,166

111,443

(5.5

Segment Contribution Margin Subtotal

125,167

3,169

128,336

136,324

4,166

140,490

(8.7

Corporate (b)

(37,273

)

2,910

(34,363

)

(31,117

)

2,141

(28,976

)

(18.6

EBITDA (non-GAAP)

87,894

6,079

93,973

105,207

6,307

111,514

(15.7

Add: Stock-based compensation

2,295

—

2,295

3,629

—

3,629

(36.8

Add: Compensation charge related to NQDC Plan investment appreciation

1,850

—

1,850

1,135

—

1,135

63.0

Adjusted EBITDA (non-GAAP)

92,039

6,079

98,118

109,971

6,307

116,278

(15.6

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information - Category Information

(dollars in thousands)

(unaudited)

Six Months Ended

December 28, 2025

Restructuring cost/Severance

As adjusted (non-GAAP) December 28, 2025

December 29, 2024

System Implementation Costs

As adjusted (non-GAAP) December 29, 2024

% Change

Net revenues:

Consumer Floral & Gifts

296,675

—

296,675

369,529

—

369,529

(19.7

BloomNet

45,249

—

45,249

45,912

—

45,912

(1.4

Gourmet Foods & Gift Baskets

575,773

—

575,773

602,457

—

602,457

(4.4

Corporate

157

—

157

202

—

202

(22.3

Intercompany eliminations

(475

)

—

(475

)

(518

)

—

(518

)

8.3

Total net revenues

917,379

—

917,379

1,017,582

—

1,017,582

(9.8

Gross Profit:

Consumer Floral & Gifts

116,501

—

116,501

152,217

—

152,217

(23.5

39.3

41.2

BloomNet

22,297

—

22,297

23,152

—

23,152

(3.7

49.3

50.4

Gourmet Foods & Gift Baskets

233,215

—

233,215

252,234

1,992

254,226

(8.3

40.5

41.9

42.2

Corporate

215

—

215

309

—

309

(30.4

136.9

153.0

Total gross profit

372,228

—

372,228

427,912

1,992

429,904

(13.4

40.6

42.1

42.2

EBITDA (non-GAAP)

Segment Contribution Margin (non-GAAP) (a)

Consumer Floral & Gifts

20,037

1,108

21,145

26,531

—

26,531

(20.3

BloomNet

12,099

248

12,347

14,301

—

14,301

(13.7

Gourmet Foods & Gift Baskets

90,113

1,813

91,926

95,024

5,079

100,103

(8.2

Segment Contribution Margin Subtotal

122,249

3,169

125,418

135,856

5,079

140,935

(11.0

Corporate (b)

(71,966

)

2,910

(69,056

)

(64,592

)

3,008

(61,584

)

(12.1

EBITDA (non-GAAP)

50,283

6,079

56,362

71,264

8,087

79,351

(29.0

Add: Stock-based compensation

4,607

—

4,607

6,108

—

6,108

(24.6

Add: Compensation charge related to NQDC Plan investment appreciation

4,202

—

4,202

2,873

—

2,873

46.3

Adjusted EBITDA (non-GAAP)

59,092

6,079

65,171

80,245

8,087

88,332

(26.2

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

(in thousands, except for per share data)

(unaudited)

Reconciliation of net income to adjusted net income (non-GAAP):

Three Months Ended

Six Months Ended

December 28, 2025

December 29, 2024

December 28, 2025

December 29, 2024

Net income

70,553

64,348

17,596

30,158

Adjustments to reconcile net income to adjusted net income (non-GAAP)

Add: System implementation costs

—

6,307

—

8,087

Add: Restructuring cost/ Severance

6,079

—

6,079

—

Deduct: Income tax effect on adjustments

(1,475

)

(2,002

)

Adjusted net income (non-GAAP)

76,661

69,180

23,704

36,243

Basic and diluted net income per common share

Basic

1.11

1.01

0.28

0.47

Diluted

1.10

1.00

0.28

0.47

Basic and diluted adjusted net income per common share (non-GAAP)

Basic

1.20

1.08

0.37

0.57

Diluted

1.20

1.08

0.37

0.56

Weighted average shares used in the calculation of basic and diluted net income and adjusted net income per common share

Basic

63,816

63,836

63,723

64,017

Diluted

63,965

64,306

63,913

64,501

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

(in thousands)

(unaudited)

Three Months Ended

Six Months Ended

December 28, 2025

December 29, 2024

December 28, 2025

December 29, 2024

Net income

70,553

64,348

17,596

30,158

Add: Interest expense and other, net

4,215

3,232

6,178

4,825

Add: Depreciation and amortization

13,569

14,130

26,471

27,168

Add: Income tax (benefit) expense

(443

)

23,497

9,113

EBITDA

87,894

105,207

50,283

71,264

Add: Stock-based compensation

2,295

3,629

4,607

6,108

Add: Compensation charge related to NQDC Plan investment appreciation

1,850

1,135

4,202

2,873

Add: System implementation costs

—

6,307

—

8,087

Add: Restructuring cost/Severance

6,079

—

6,079

—

Adjusted EBITDA

98,118

116,278

65,171

88,332

(b) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive, and stock-based compensation, as well as changes in the fair value of the Company's NQDC Plan. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions are included within corporate expenses as they are not directly allocable to a specific segment.

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

(in thousands)

(unaudited)

Reconciliation of net cash provided by operating activities to free cash flow (non-GAAP):

Six Months Ended

December 28, 2025

December 29, 2024

Net cash provided by operating activities

170,909

151,307

Capital expenditures

(14,290

)

(23,023

)

Free cash flow

156,619

128,284